Boost for IPO market as Fahour’s Latitude soars on debut

Original article by Joyce Moullakis
The Australian – Page: 13 & 17 : 21-Apr-21

Shares in non-bank lender Latitude Financial closed at $2.70 on 20 April, four per cent above the stock’s listing price of $2.60. Latitude reached an intra-day high of $2.99, and the stock finished its first day of trading with a market capitalisation of about $2.7bn. Latitude’s successful sharemarket debut after several failed attempts in the past is likely to bolster the IPO market; indeed, a number of rival non-bank lenders are considering a sharemarket float, including SocietyOne and Pepper Australia.

CORPORATES
LATITUDE FINANCIAL SERVICES GROUP LIMITED – ASX LFS, SOCIETYONE AUSTRALIA PTY LTD, PEPPER AUSTRALIA PTY LTD

ANZ steers well clear of buy now, pay later

Original article by Ticky Fullerton
The Australian – Page: 18 : 9-Nov-20

The ‘buy now, pay later’ industry is enjoying strong growth, but the ANZ Bank intends to avoid the sector. The bank’s former chairman David Gonski says that while it is good that BNPL providers allow people to access credit when they need it, consumers must be mindful that they will pay interest when using these services. Meanwhile, Gonski believes that Australia’s investment banking sector presents opportunities at present. Gonski stepped down as ANZ chairman in late October.

CORPORATES
AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ

RBA warns on buy now, pay later dangers

Original article by Gerard Cockburn
The Australian – Page: 14 : 16-Jan-20

Documents released under Freedom of Information laws shows that the Reserve Bank of Australia had expressed concern about the growth of ‘buy now, pay later’ platforms in March 2019. The internal memorandum cautioned that the rapid growth in such platforms is beginning to present a risk to financial stability, and noted that some consumers may not fully understand the risks associated with these platforms. However, the central bank also concluded that buy now, pay later services can be more beneficial to some consumers than credit cards.

CORPORATES
RESERVE BANK OF AUSTRALIA, AFTERPAY LIMITED – ASX APT, ZIP CO LIMITED – ASX Z1P, GOLDMAN SACHS AUSTRALIA PTY LTD

Reserve finds silver lining in household debt cloud

Original article by Cliona O’Dowd
The Australian – Page: 27 : 15-Nov-19

Australia’s household debt-to-income ratio is now about 190 per cent, compared with around 70 per cent in the early 1990s. However, the Reserve Bank’s assistant governor Michele Bullock notes that households that are in the top 40 per cent of income distribution account for three quarters of household debt. Bullock adds that while there has also been an increase in mortgage loan arrears, it is largely confined to several states. She also says negative housing equity is generally not a major concern unless somebody becomes unemployed and must sell their home.

CORPORATES
RESERVE BANK OF AUSTRALIA

Rapid growth in use of Buy-Now-Pay-Later digital payments – such as Afterpay, zipPay and zipMoney

Original article by Roy Morgan
Market Research Update – Page: Online : 5-Nov-19

New research from Roy Morgan shows that 1.95 million Australians aged 14+ used one of the latest ‘buy-now-pay-later’ digital payment methods such as Afterpay, zipPay or zipMoney in the year to September 2019, up from 1.38 million in the previous 12 months. Australians between the ages of 14-34 account for 55.9% of ‘buy-now-pay-later’ users, with those in the 25-34 age range making up 33.5% of all users. To put this in perspective, that age group represents only 18.1% of the population aged 14+, which means that those aged 25-34 are nearly twice as likely to be using a ‘buy-now-pay-later’ system as the average across the whole population. By contrast, Australians over 50 make up only 14.2% of pay-later users despite being 40.7% of the population aged 14+. Meanwhile, the use of credit cards is declining, with the percentage of Australians holding a credit card down about 3% points over the past year. This data is from Roy Morgan’s Single Source survey, based on in-depth interviews conducted face-to-face with around 50,000 consumers each year in their homes.

CORPORATES
ROY MORGAN LIMITED, AFTERPAY TOUCH GROUP LIMITED – ASX APT, ZIPPAY, ZIPMONEY

Major banks hit as credit growth stalls

Original article by Joyce Moullakis
The Australian – Page: 17 & 28 : 1-Oct-19

Official data shows that annual growth in credit fell to an eight-year low of 2.9 per cent in the year to August, after rising by just 0.2 per for the month. Housing credit and business credit also increased by 0.2 per cent in August, with growth of 3.1 per cent and 3.4 per cent respectively for the year to August. Ed Henning of CLSA anticipates a slight improvement in credit growth in coming months, although Chris Read of Morgan Stanley says credit growth is unlikely to rebound in the near-term unless there is an upturn in housing turnover as well as prices.

CORPORATES
CLSA AUSTRALIA PTY LTD, MORGAN STANLEY AUSTRALIA LIMITED, RESERVE BANK OF AUSTRALIA, SWITZER ASSET MANAGEMENT LIMITED, MST MARQUEE, UBS HOLDINGS PTY LTD, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, MACQUARIE GROUP LIMITED – ASX MQG

Over 1.5 million users of Buy-Now-Pay-Later digital payments

Original article by Roy Morgan
Market Research Update – Page: Online : 19-Mar-19

Roy Morgan’s ‘Digital Payment Solutions Currency Report’ January 2019 shows that 1.59 million Australians aged +14 used a ‘buy-now-pay-later’ digital payment method in the last 12 months. Millennials accounted for 40.6% of ‘buy-now-pay-later’ users in the year to January 2019, followed by Gen Z (35.1%). These two generations combined account for 75.7% of the market, or 1.2 million consumers. The two oldest generations (baby boomers and pre-boomers) make very little use of the new ‘buy-now-pay-later’ systems, with a combined market share of only 5.2% (83,000). The report also shows that awareness of these new payment methods is a healthy 42.9%, well ahead of the overall usage levels of 7.7%. Afterpay had 39.9% awareness and 6.9% usage over the last 12 months, well ahead of zipPay with 19.0% awareness and 1.6% usage. The data from this report is from Roy Morgan’s Single Source survey, which is based on in-depth interviews conducted face-to-face with over 50,000 consumers per annum in their homes.

CORPORATES
ROY MORGAN LIMITED, AFTERPAY TOUCH GROUP LIMITED – ASX APT, ZIPPAY

Payday lenders to face probe

Original article by Michael Roddan
The Australian – Page: 21 : 18-Oct-18

The Senate will undertake an inquiry into payday lenders and short-term credit providers after the proposed probe was backed by the Greens and Centre Alliance. Payday lenders and so-called "buy now, pay later" credit providers were excluded from the financial services royal commission’s terms of reference. Shares in Afterpay Touch Group, Zip Co and Cash Converters fell sharply in response to news of the inquiry.

CORPORATES
AFTERPAY TOUCH GROUP LIMITED – ASX APT, ZIP CO LIMITED – ASX Z1P, CASH CONVERTERS INTERNATIONAL – ASX CCV, CREDIT CORP GROUP LIMITED – ASX CCP, AUSTRALIA. SENATE STANDING COMMITTEE ON ECONOMICS, AUSTRALIAN GREENS, CENTRE ALLIANCE, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, THORN GROUP LIMITED – ASX TGA, RADIO RENTALS, NIMBLE PTY LTD, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, AUSTRALIAN LABOR PARTY

RBA flags risk of record household debt

Original article by David Uren
The Australian – Page: 2 : 18-Jul-18

The minutes of the Reserve Bank of Australia’s board meeting for July indicate that although the central bank expects to begin tightening monetary policy, it is in no hurry to do so. The minutes also show that high levels of household debt continues to be a concern for the central bank. It noted that while an increase in the cash rate could be expected to reduce consumer spending, the high level of debt means a rate cut may not necessarily result in increased spending.

CORPORATES
RESERVE BANK OF AUSTRALIA

ASIC calls for crackdown on card sharks

Original article by Richard Gluyas
The Australian – Page: 19 & 22 : 4-Jul-18

A review of the credit card industry by the Australian Securities & Investment Commission has found that many consumers are finding it hard to repay their debt. ASIC deputy chair Peter Kell says relatively few card issuers actively take action to address such problems. In addition to being in arrears, many consumers have been issued with credit cards that are inappropriate for their needs. ASIC has proposed new rules whereby a consumer’s credit card debt would be restricted to their capacity to repay it within three years.

CORPORATES
AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, RESERVE BANK OF AUSTRALIA, CITIGROUP PTY LTD, LATITUDE GROUP, AMERICAN EXERGEN CORPORATION, MACQUARIE GROUP LIMITED – ASX MQG